Donald Trump’s victory casts a shadow over the Federal Reserve

The central bank could fall under an uncomfortable political spotlight should Trump follow his previous pattern of publicly attacking Fed Chair Jerome Powell.

Donald Trump’s victory in Tuesday’s presidential contest injects deep uncertainties into the US economic outlook that could alter the Federal Reserve’s policy calculus in the months ahead, while renewing questions about how fiercely he might pressure the central bank during his second term in the White House.

In his campaign, Trump promised to wield tariffs more aggressively against US trading partners, deport millions of undocumented immigrants and extend his 2017 tax cuts. Those policies, if enacted, could put upward pressure on prices, wages and the federal deficit, according to many estimates.

That would complicate the Fed’s job as officials seek to lower inflation to their 2% objective while protecting the labor market. Amid that delicate task, the central bank could fall under an uncomfortable political spotlight should Trump follow his previous pattern of publicly attacking Fed Chair Jerome Powell.